San Diego's down payment problem has a state-funded answer.

Start with the condo market, not the median

The headline number scares people off. Roughly $1 million for a detached San Diego home — mid-2026 — makes ownership feel like a fantasy on a normal paycheck. But the entry point to this market was never the detached median. It's the condo and townhome inventory that trades between roughly $550,000 and $750,000, and there is a lot of it.

Four pockets where we see first-time buyers land again and again:

• Mission Valley — newer mid-rise buildings near the trolley line and the Snapdragon Stadium district, central to everything.
• North Park — smaller, older complexes in one of the city's most walkable neighborhoods; you trade square footage for lifestyle.
• Rancho Bernardo — townhomes with garages and highly rated schools, popular with buyers planning a family.
• Clairemont — a central-city compromise: 1970s-era condos priced under the coastal premium, fifteen minutes from almost anywhere.

At those prices, the MyHome Assistance Program — a deferred "silent second" of up to 3.5% of the purchase price on an FHA first mortgage, or 3% on conventional — does serious work:

Because FHA's minimum down payment is also 3.5%, that $22,750 can cover the entire required down payment on the $650,000 condo. Closing costs remain — and the ZIP program, a 0% interest deferred loan of roughly 2–3% of the first mortgage, exists precisely to shrink that last hurdle. ZIP pairs with MyHome, so the two stack.

$259,000. Yes, really.

San Diego County's 2026 CalHFA income limit is $259,000 per household. Read that next to what people around here actually earn: a nurse married to a firefighter, two mid-career engineers, a Navy chief and a teacher — nearly all of them fit under it. The limit is calibrated to a high-cost county, which means CalHFA here isn't a low-income program; it's a no-savings-yet program. The buyers it serves earn solid money but watched rent absorb what should have been their down payment fund.

Income limits are county-specific and verified precisely during approval, so check the 2026 income limits rather than guessing. Dream For All — the up-to-20% shared appreciation option for first-generation buyers — uses a lower $207,000 San Diego cap and only opens in limited voucher rounds, but when a round lands, San Diego applicants with paperwork ready have done extremely well with it.

Military San Diego: two good paths, one decision

With the region's huge active-duty and veteran population, half our San Diego consultations start with "I have VA eligibility — do I even need CalHFA?" Fair question. A VA loan requires 0% down, which usually beats anything an assistance program can add. MyHome can technically ride along with a VA loan, but in that pairing it's capped at $15,000, typically aimed at closing costs rather than down payment.

So the real comparison is VA with nothing down versus CalHFA FHA with MyHome covering the 3.5%. Rate, funding fee, mortgage insurance, and your cash on hand decide it — we run both scenarios side by side in one sitting rather than guessing.

San Diego CalHFA FAQ

Comparing nearby markets?

Stretching your budget further south often means Chula Vista or National City, where the same programs meet lower price tags. Heading east, El Cajon has some of the county's least expensive condos. Or tell us your numbers and we'll map the options for you.

Home prices above are approximate market estimates as of mid-2026 and change monthly. Program figures summarized from calhfa.ca.gov as of July 2026. This page is educational only and is not a loan commitment.